After recent price depreciation improved fair value and future returns for several stocks, investors have made a significant return to Nigerian equities.
The stock market’s major benchmark indices all ended the weekend in positive territory, and most market segments were generally upbeat.
The average return for Nigerian stocks over the weekend was 0.46 percent, translating to net capital gains of N119 billion over the course of the week’s four trading sessions.
In a week marked by uneven performance on the international markets, the Nigerian market beat global indices for emerging and frontier markets and ranked among the positive group.
The average year-to-date return increased to 11.36% as a result of the rally and had more advancers than decliners, maintaining the belief that the Nigerian market may be on track to post its third straight year of positive returns.
The value-based common index known as the All Share Index, which tracks all share prices listed on the Nigerian Exchange (NGX), concluded the weekend at 47,569.04 points as opposed to the index’s initial value of 47,351.43 points for the week. The total market value of all listed securities increased concurrently from the week’s opening value of N25.791 trillion to the weekend’s closing value of N25.910 trillion.
The ASI and market capitalization agree, indicating that share price appreciation rather than primary market actions like the listing of new shares or the revaluation and splitting of existing shares, was the primary driver of the increase in market value.
The majority of sectoral indices also ended on a strong note, highlighting the widespread look for a deal that influenced share prices throughout the week. The 30 largest stocks listed on the Exchange are tracked by the NGX 30 Index, which saw above-average growth of 0.65%. The NGX Industrial Goods Index saw a gain of 3.17 percent, which was the greatest. The significant NGX Banking Index increased by 1.93 %. The most populated sector of the market, as measured by the NGX Insurance Index, had an average return of 1.72 percent for the week. The NGX Oil and Gas Index, on the other hand, declined by 2.13 percent, while the NGX Consumer Goods Index fell by 0.74 percent.
The NGX Pension Index, which tracks portfolios that adhere to the investing standards for pension funds, increased by 0.38 percent, while the NGX Lotus Islamic Index, which tracks stocks that follow Islamic investment guidelines, posted an above-average return of 0.90 percent.